McDonald's worries about losing low-income customers: Is price the reason why?
Fast food giant McDonald's is worried about losing lower-income customers, as data shows it can probably no longer be considered a "cheap" food option.
When McDonald's released its latest earnings report in the United States it said comparable sales were up but chief executive Christopher Kempczinski said low-income customers were avoiding its restaurants.
CNBC reported that he noted "traffic from lower-income consumers declining nearly double-digits in the third quarter, a trend that's persisted for nearly two years.
"Traffic growth among higher-income consumers remains strong, increasing nearly double-digits in the quarter."
A spokesperson for McDonald's in New Zealand said this country did not report on total sales or business performance so he could not say whether the same trend was happening here.
On social media posts recently, customers have questioned the price of the new Big Arch burger, and complained that there had been price increases on the McDonald's app.
Another said it was like a Big Mac but more expensive while a third customer said it was due to wage rises.
On Uber Eats this week, a Bacon & Egg McMuffin was $9.30, a Big Mac was $11.80 and a cheeseburger $6.80. A Big Arch burger was $16.
Burger King had a Whopper with cheese for $14.80 and a Hawaiian BK Chicken for $17.60. Its triple cheeseburger was $13.90.
Gareth Kiernan, chief forecaster at Infometrics, said Stats NZ data showed takeaway food of all types had become a lot more expensive recently.
Between September 2005 and September 2025, the consumer price index had risen 66 percent, the food price index 84 percent, ready-to-eat food 103 percent and a Big Mac 93 percent.
Fish and chips had lifted 154 percent.
Kiernan said the fact the Big Mac had increased in price less than the 147 percent increase in the minimum wage over the period could be considered a good outcome.
He said takeaway food prices would have been driven up by both the wider increase in food prices and the cost of labour.
Bodo Lang, a marketing expert at Massey University, said it was often said that McDonald's had stopped being a cheap option but he was not convinced that weas the case.
"Despite offering high priced menu items, McDonalds still offers a range of choices for smaller appetites and smaller wallets. Classic items, such as the Big Mac or Quarter Pounder are still likely at the cheaper end when compared to others. For example, McDonald's prices are comparable with other international chains such as Burger King or KFC. Even when compared to local independent operators, McDonalds prices are still fairly comparable. At least for its classic items. Ordering anything via an app and have it delivered will obviously at much cost and little convenience, thus distorting consumers price impression."
Burger Fuel was charging $24.50 for a Bacon Backfire burger on Uber Eats this week.
"What McDonald's has done very well is to diversify its product portfolio to appeal to different tastes and wallet sizes. While its classics are still available at comparatively low prices, McDonald's luxe items, such as its Grilled Chicken Bacon Deluxe, are at the upper end of the price range and compete head on with the likes of local chains, such as Burger Fuel. So McDonald's has done an excellent job of trying to appeal to its classic customers, particularly through bundles and offers, while appealing to others with premium priced items," Lang said.
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Charities turning away high numbers of volunteer applications
Charities are turning away people wanting to volunteer amidst a flood of interest they say is linked to the high rate of unemployment.
It comes as some businesses receive thousands of applications for paid roles and people look for experience anywhere they can.
The advocacy organisation Volunteering NZ has been tracking the trend. Spokesperson Margaret McLachlan said there has been a considerable rise in applications for volunteer roles across a range of charities.
Many application forms asks people to divulge if they are job hunters.
"Over the last year or so, they are seeing more people coming in who are saying they are in that category. They are looking for work but doing volunteering while that process is taking place."
"As unemployment increases and the cost of living, times are tougher for everybody."
At the same time, she said community organisations supporting social services were busier and needed more helpers.
McLachlan said depending on the organisation, they might want to do a police check, a reference check and an interview.
"In some cases it can be a process to go through and not always, and that can take some time.
"It's actually the same barriers that a person might find in finding a job, can also apply to volunteering. It's not always a easy option."
SPCA had 120 op shops and animal rescue centres across the country in which volunteers worked.
General manager of retail Cathy Crichton said they received about 1300 extra applications for volunteer roles, a 32 percent increase, from June to November 2025, compared to 2024.
"There's definitely a nudge forward which is very exciting and we're very grateful."
But it meant they were not accepting any more volunteers in some areas.
"Because the applications are up it's a unique scenario. But at this point in time, in smaller locations, we've actually got a hold in 19 locations in New Zealand where we are at capacity - and that's very rare and it's a very new trend."
Crichton said anyone seeking volunteer work should think creatively about what skills they can offer - it could be in administration or marketing.
"We'd love to welcome as many people as we could because the more hands on deck the more we can do and the more we can contribute to the community."
She said people were self-motivated to apply for volunteer work.
The unemployment rate rose to 5.3 percent in the September quarter, meaning 160,000 people were jobless. The next quarterly figures are out in February.
"There's a willingness to give back and contribute to the community. Unemployment being high really does encourage people to engage with the workforce and get experience," Crichton said.
"It really is about staying connected with the community and meeting others."
She said they had also seen an increase in young people seeking volunteer work experience.
"It's a great opportunity to get work experience and a reference and there's an appeal there as an employer...I really do think it adds value to a CV."
Stats NZ data showed over half of New Zealanders, 53 percent, volunteered during March 2025 and of those, 27.6 percent volunteered through an organisation and 40.8 percent volunteered directly for another person.
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